Chinese Investors Repaid in Bank Dispute

Jan. 23, 2013 7:39 a.m. ET

BEIJING—Chinese investors in a high-profile dispute with a local bank over losses related to an increasingly scrutinized type of investment product have been paid back, according to investors and other people with direct knowledge of the case.

The issue, involving China's Huaxia Bank Co., has shone a light on the risks associated with the proliferation of short-term investment products sold by banks, called wealth management products. The products are generally considered a low-risk alternative to deposits while offering...